Thread regarding DXC Technology layoffs

One of my colleagues was WFR'd last year (aged 50+ with 11 years of service and exemplary performance) and now DXC is one of their suppliers. My colleague talks about DXC trying to pump a sales cashflow but the wheels of progress are stymieing DXC's Sales machine which just creates more noise than any tangible value. Sux to be DXC which is rapidly becoming a Tier 2 supplier with slipping standards.

Accordingly, large companies often have lower cost of capital due to easily obtained financing, providing an advantage over smaller companies. We can test if DXC’s debt levels are sustainable by measuring interest payments against earnings of a company. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In DXC’s case, the ratio of 12.38x suggests that interest is amply covered.

If you read the whole story Yahoo Finance really isn't saying anything bad about the company

If you hire a company to perform a task and the employees who you see performing the task turn up looking apathetic and disillusioned, you worry about both their productivity and the quality of the work.

In country delivery resources in US, Western Europe incl UK, Australia, New Zealand and Singapore are high cost, so they WFR to send the work offshore or to replace with new hires. New hires in these countries often come with lower salaries as their is less demand for the resources since all the major service providers have sent work offshore.

Delivery resources look apathetic and disillusioned because if they are a longer term employee (higher salary as they were hired when IT resources where valued in the market) they know they will be targeted for WFR and if they are a new hire they know there is little potential for salary increase or bonus even if they do an outstanding job.

Companies are more likely to do the work in house because they can get access to exactly the same pool of in country resources and by treating them more fairly by providing opportunities for training and salary increases they can have highly motivated and passionate team members - they can also reduce cost through in house employees as service providers are trying to get a 30% margin to cover their high management overheads and to make a profit.

Bottom line is that service providers face continued pressure and downward spiral on profit margins because they only have cost as the value proposition - they should be using lower risk as they have the most experienced and passionate team - however the WFR program for delivery has destroyed the ability to use that value prop to differentiate.

None of the major service providers are doing well, they have made it a commodity business which means continued downward pressure on price and profits in an ever shrinking business as more organizations take the valued skills in house and rely on cloud for the commodity of compute and storage. Poor leadership and the wrong strategy in my view.

@@TQN1lLy-1ztr

I agree with you. I left HPE ES last March. I am now contracting as a Procurement manager and among my new colleagues within IT there are ex HPE and EDS staff who, like me, will never allow ourselves to work for DXC, HPE or consider letting DXC get any work from those companies we now work for.

What kind of person would I be to risk compromising my client's business by exposing it to the practices of Lawrie or Whitman or their successors?

Don't worry - everyone is (looking and about to leave, or just riding out until their WFR date.

Mikey needs to be very afraid of commentary like that of Finance Yahoo as his retirement plans (selling options and stock) at a good price are about to hit the slippery slope.

I get your point @TQN1lLy-1nh -but I don't think you get mine.

every employee that is not treated correctly will keep grudges against DXC, and that feeling can remain for a long time.

and there is a big likelyhood that these feelings will spread around. DXC does branding to influence how they will be perceived by the customers/world.

But every employee can become a customer- competitor shareholder - invester - parter- .../ father - mother of a customer/ friend of... / ...

so whether we go out of the company or remain... the negativity that DXC caused by inhuman treatment will remain. Call it Karma.

you find the athmosphere around DXC now everywhere .

comments on DXC on Finance Yahoo: "This company is a dog. Management is only focused on the share price and their options and bonuses. Attrition is sky high, very difficult to hire people due to bad reputation, relying on sub contractors for new business since there is no bench of resources. This company is a house of cards just waiting for the strong wind to blow it over. Dump your shares if you've made some money since they will tank in the near future."

get the hell out of here if you don't like the company !